Spectrum Investors, LLC (6FL0465)

B-418891.4 Sep 21, 2022 Jump To FULL REPORT VIEW DECISION RELATED PAGES GAO CONTACTS Highlights Spectrum Investors, LLC, a small business, of Hillsboro, Florida, requests that our Office recommend that it be reimbursed $232,330.39 for proposal preparation costs and the costs incurred in pursuing its protest, Spectrum Investors, LLC, B-418891 et al., Oct. 6, 2020 (unpublished decision), which challenged the award of a lease to Plantation Professional Plaza, LLC, of Plantation, Florida, under Request for Lease Proposals (RLP) No. 6FL0465. The RLP was issued by the General Services Administration (GSA) for the lease of office space in Plantation, Florida, for the Department of the Treasury. Following outcome prediction alternative dispute resolution (ADR) conducted by our Office, the agency represented that it would take corrective action in response to the protest by considering the protester's claim for its reasonable proposal preparation and protest costs. Following unsuccessful negotiations between the parties, GSA asserts that Spectrum's recovery should be limited to $28,772.68. For the reasons that follow, we grant in part and deny in part the protester's request. In total, we recommend that the protester be reimbursed the sum of $61,449.87. View Decision DOCUMENT FOR PUBLIC RELEASE The decision issued on the date below was subject to a GAO Protective Order. This redacted version has been approved for public release. Decision Matter of: Spectrum Investors, LLC--Costs File: B-418891.4 Date: September 21, 2022 Robert C. MacKichan, Jr., Esq., Gordon Griffin, Esq., and Hillary J. Freund, Esq., Holland & Knight LLP, for the protester. Tammi Snyder Queen, Esq., Jessica Gunzel, Esq., and Carisa LeClair, Esq., General Services Administration, for the agency. Evan D. Wesser, Esq., and Michael Willems, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Request for recommendation that agency reimburse a greater portion of the protester’s proposal preparation and protest pursuit costs than the agency has agreed to pay is granted in part, and denied in part. The portion of claimed hourly rates derived from the individuals’ salaries is reasonable and recoverable. Other portions based on corporate gross receipts or management fees paid through multiple corporate entities are unallowable or otherwise inadequately supported. The portion of protest pursuit costs commensurate with the level of effort to pursue clearly meritorious and other intertwined legal arguments are recoverable. Other costs incurred in pursuit of unsuccessful legal arguments that were based on distinct facts and legal grounds are not recoverable. DECISION Spectrum Investors, LLC, a small business, of Hillsboro, Florida, requests that our Office recommend that it be reimbursed $232,330.39 for proposal preparation costs and the costs incurred in pursuing its protest, Spectrum Investors, LLC, B-418891 et al., Oct. 6, 2020 (unpublished decision), which challenged the award of a lease to Plantation Professional Plaza, LLC, of Plantation, Florida, under Request for Lease Proposals (RLP) No. 6FL0465. The RLP was issued by the General Services Administration (GSA) for the lease of office space in Plantation, Florida, for the Department of the Treasury. Following outcome prediction alternative dispute resolution (ADR) conducted by our Office, the agency represented that it would take corrective action in response to the protest by considering the protester’s claim for its reasonable proposal preparation and protest costs. Following unsuccessful negotiations between the parties, GSA asserts that Spectrum’s recovery should be limited to $28,772.68. For the reasons that follow, we grant in part and deny in part the protester’s request. In total, we recommend that the protester be reimbursed the sum of $61,449.87. BACKGROUND The RLP, which was issued on January 24, 2020, and subsequently amended three times, sought offers to lease approximately 58,000 square feet of contiguous space for use by the Internal Revenue Service (IRS) and the Treasury Inspector General for Tax Administration in Plantation, Florida. Award was to be made to the responsible offeror whose offer conformed to the RLP’s requirements and was the lowest-priced, technically acceptable offer submitted. Agency Report (AR) (B-418891), Exh. 1, RLP at 19.[1] Relevant here, the RLP imposed minimum parking requirements. Specifically, the RLP required that the “parking-to-square-foot ratio available on-site shall at least meet current local code requirements.” AR (B-418891), Exh. 3, RLP amend. 3 at 1. Initial proposals were due by February 14. AR (B-418891), Exh. 1, RLP at 1. On February 18, the agency notified offerors of areas of their initial proposals that needed to be addressed, and invited revised proposals by February 28. Protest (B‑418891), exh. F, GSA Notice to Spectrum at 4.